2:36 PM · 14 January 2022

BREAKING: USD gains after retail sales data

US retail sales data released at 1:30 pm GMT was a key point in today's economic calendar. Moods on the markets deteriorated ahead of the reading with US futures dropping below overnight lows. However, the release did little to change the situation with reports showing massive disappointments in all metrics.

US retail sales report for December

  • Headline: -1.9% MoM vs 0.0% MoM expected (previous: 0.3% MoM)

  • Ex-autos: -2.3% MoM vs 0.2% MoM expected (previous: 0.3% MoM)

  • Ex-autos and gas: -2.5% MoM vs -0.2% MoM expected (previous: 0.2% MoM)

  • Control group: -3.1% MoM vs 0.0% MoM expected (previous: -0.1% MoM)

Such a weak report for December, a month usually marked with strong holiday sales, shows that elevated inflation may be hitting US consumers. This will be an important factor for Fed to assess whether quick actions aimed at bringing down price growth are needed. It looks like they are and Fed members may become even more hawkish now.

US index futures dipped following release of US retail sales data. US dollar also dropped in a knee-jerk move but managed to recover later on and is now trading above pre-release levels against major peers.

USDJPY dipped following release of the US retail sales data. However, weakness was short-lived and the pair started to regain ground. Question remains whether it manages to climb back above a short-term support at 113.70. Source: xStation5

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